NEW YORK, Dec. 4 (Xinhua) -- U.S. stocks plunged in intraday trading on Tuesday, with all three major indices erasing more than 2 percent, amid worries over inverted yield curve signaling a possible economic slowdown.

At midday, the Dow Jones Industrial Average decreased 529.47 points, or 2.05 percent, to 25,296.96. The S&P 500 erased 56.48 points, or 2.02 percent, to 2,733.89. The Nasdaq Composite Index was down 174.60 points, or 2.35 percent, to 7,266.91.

The U.S. three-year treasury note yield stood at 2.822 percent, higher than the five-year note on Tuesday. The inverted yield curve caught investors' attention because historical statistics showed that when short-term yields trade above longer-term rates a recession could follow.

Fears of a possible economic slowdown were also spurred by weaker-than-expected quarterly guidance from Toll Brothers. The U.S. Leading builder of luxury homes pointed to negative reports about the housing market as the cause for the slowdown.

The U.S. Census data showed new home sales have declined for 11 straight months.

On sectors, financials and industrials led the slide, declining 3.96 percent and 3.31 percent respectively.

Apple shares fell nearly 4 percent in intraday trading after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies.

HSBC downgraded Apple to hold from buy and cut its 12-month price target to 200 U.S. dollars from 205 dollars.

Other Dow components which plunged included Caterpillar, JPMorgan Chase and DowDuPont, which declined 5.57 percent, 3.96 percent and 3.63 percent respectively. Enditem

Related

Go to Forum >>0 Comment(s)